Reinsurance News

The Florida Hurricane Catastrophe Fund (FHCF) may buy reinsurance at a lower attachment point of $10.5 billion, to protect itself against losses from the 2017 tropical storm and hurricane season, as its trustees expressed a preference for moving the risk transfer down the tower compared to prior years.

The contribution made by total return reinsurance vehicle KaylaRe Ltd. to insurance and reinsurance specialist Enstar is growing, as the strategy begins to scale up offering efficiency benefits across the business for the firm.

The estimate of insurance and reinsurance industry loss due to the impacts of extra-tropical cyclone (or European windstorm) Thomas (which was also known as Doris in the UK) has been increased by 17% to EUR 249 million, by PERILS AG.

Once again, the prospects for some aggregate reinsurance contracts, ILS deals and even some catastrophe bonds, in particular those which have exposure to U.S. severe thunderstorm risks, are being highlighted as gradually becoming more risky as deductibles are eroded, raising the risk that some could face losses later in the year.

The Florida Hurricane Catastrophe Fund (FHCF) is again looking at utilising risk transfer from the reinsurance markets as a source of additional protection for the 2017 hurricane season, with a $1 billion renewal being explored by the Florida State Board of Administration.

In an interview with Artemis, Founders of Ventus Risk Management, Stuart Mercer and George Reeth, discussed the MGA’s themes and goals in respect of the current ILS and broader re/insurance market environment.

Insurance industry losses continue to rise due to U.S. severe thunderstorms and convective weather, with the last week another that will result in minimally hundreds of millions being added to the insurance industry bill, according to Impact Forecasting, the risk analytics and modelling arm of reinsurance broker Aon Benfield.

The Peruvian government and the Ministry of Agriculture have chosen to expand the country’s El Seguro Agrario Catastrófico (SAC), or the Agricultural Catastrophe Insurance scheme, to include five more regions, with the launch of an international tender, according to reports.

Reinsurance Group of America has reinsured a $2.3 billion annuities portfolio for a subsidiary of Swiss insurer Zurich, helping Zurich to reduce risk and better manage its capital, by offloading the liabilities associated with this legacy book of annuities business using reinsurance capital.

Persistent and severe weather events in the U.S. so far in 2017 has seen large insurer Allstate’s estimated catastrophe losses surpass $1 billion, suggesting that some could be calling on their reinsurance protection as losses eat through retentions, possibly impacting insurance-linked securities capital (ILS), too.